The Changing Perception Of Alcohol

With growing consciousness for food choices, consumers have also begun to reevaluate their drinking habits and the impacts of alcohol consumption on their health and well-being.

This growth in awareness and concern for personal health has driven market opportunity for non-alcoholic beverages that taste like and look like traditional alcoholic beverages. New Zealand’s social culture is underpinned by alcoholic consumption, with after-work drinks, a glass of wine with dinner, or a Sunday barbeque with beer being common occurrences.

However, with consumer behaviour transitioning to healthier lifestyles, supported by healthy food and beverage consumption, the demand for nonalcoholic alternatives has increased, allowing consumers to comfortably enjoy their favourite alcoholic beverages minus the alcohol without judgement or removing the sociability associated with drinking.

According to FMI, the non-alcoholic beer market is estimated to reach a value of USD 21.345 million in 2023, which is anticipated to increase to USD 45.0195 million by 2033 at a compound annual growth rate (CAGR) of eight percent.

Non-alcoholic beers can lower blood pressure, inflammation, and homocysteine levels. Hop beers, in particular, boost the action of the neurotransmitter gammaaminobutyric acid (GABA), which is a fundamental mechanism behind sleep. When GABA levels rise, neuronal activity decreases, resulting in a calming effect in the brain.

This positive effect on the well-being of individuals, both physically and mentally, has further driven the non-alcoholic beer market.

In the United States, non-alcoholic beer accounted for 31.2 percent of the global market share in 2022. Comparatively, China is expected to command a significant proportion of the market share over the next decade. The accessibility of various flavours and low-alcohol content beers across supermarkets and online channels in China is anticipated to drive sales at an 8.3 percent CAGR over the forecast period.

Data has also revealed that in New Zealand, 2.1 million consumers are either open to or have bought non-alcoholic beverages in the three months leading up to January 2023, a category increase of 40 percent since February 2022.

This change is being led by younger generations, with Generation Z consuming up to 20 percent less alcoholic beverages than millennials, as the perception of alcohol for younger generations, regarding its impact on mental and physical welfare, differs from the socialisation aspect it is often associated with.

With this generational change in the perception of alcohol and the growing consciousness of consumers making food and beverage decisions based on health benefits, the market for non-alcoholic beverages will experience significant growth and innovation opportunity. n